RFI, RFP & RFQ Meaning & Process

Electronic RFI, RFP and RFQ also known under the umbrella: RFx software. eRFx is used to gather both qualitative and quantitative information from supplier in one online platform. The supplier evaluation process is made easier as all information is gathered in one place, and one single file can be extracted containing all information.

eRFx Definition: Electronic Request for Information, Request for Quotation & Request for Proposal

"eRFx is an online tool for interchanging qualitative and quantitative information between a buying company and its potential suppliers"

In other words, eRFx is a piece for software, which can be used to share and collect information from suppliers. eRFx will typically substitute an email program as an enabler between buyer and supplier. Examples of an eRFx include a Supplier Pre-qualification (RFI) or a Price Collection (RFQ) or a combination with a Request for Proposal (RFP). 

Manual Tender Process vs. eRFx

The Tradition Tender Process (Manual RFx) vs. Electronic RFI, RFP & RFQ Process (eRFx).

The traditional tendering process is a very manual and time-consuming process. All templates etc. must be created by the buyer and sent via email to the suppliers.

The buyer cannot track the progress of the suppliers' work, and can only sit back and wait for the deadline. This typically entails an extension of the deadline.

The traditional tender evaluation is an extensive task, as you might need to gather multiples files into one overall analysis. This is an error-prone process that ultimately can require re-making of the analysis or in a worst case scenario causes decision making based on incorrect data.

In online eRFx software, you can choose between a set of templates available and track the progress to ensure suppliers are completing the eRFx within the deadline.

The eRFx solution will automatically evaluate incoming information based upon predefined rules. At any time you can also extract the information to one file and do further analysis. 

eRFx Advantages

How RFI, RFP and RFQ Fits in the Traditional Sourcing Process

The usage of eRFx technology tool does not require transitioning to a completely new Sourcing process. The eRFx system is just a more efficient way of completing the same steps in the traditional Sourcing process. eRFx is predominantly used in the pre-qualification steps "Pre-select potential suppliers" and "Select qualified suppliers", but can also be used in the internal analysis performed in the step "Conduct category analysis".

eAuctions, on the contrary, is most often used in the step "Conduct negotiations" as an alternative way of conducting the final supplier negotiations.